Frozen foods retailer Iceland Foods is set to pay a £100m dividend to its
management team and the collapsed Icelandic banks that own it.

The pay-out will net a massive windfall for Malcolm Walker, the supermarket's founder and chief executive, who owns around 24pc of the chain with other managers. It is the first dividend that the Deeside-based company has paid for three years.

Glitnir and the resolution committee of Landsbanki, the failed Icelandic lenders, own about 67pc of the retailer.

Iceland has performed well recently. Earnings before Interest, taxation, depreciation and amortisation [EBITDA] over the year to March is likely to be around £190m, up from £180m.

Mr Walker founded Iceland in 1970 as he moonlighted from his day job at Woolworths. However, he was ousted as executive chairman in January 2001 after the company released a profit warning just days after he sold £13.5m-worth of shares. A Serious Fraud Office investigation cleared him of any wrongdoing, but he harboured deep resentment about his treatment. He felt particular anger towards Bill Grimsey, the chief executive who replaced him in a coup.

Mr Walker is keen to buy the stake in Iceland that is being held by the banks. Earlier this year Landsbanki's resolution committee said that it was about to appoint advisors to oversee a sale but it's thought this is yet to happen.